**Executive Summary**
This document contains the response of the Minister of State for Finance to an unstarred question in Lok Sabha regarding the privatization of IDBI Bank. The response details the progress of the strategic disinvestment approved in May 2021. It also covers information on the rationale for strategic disinvestment/ privatization.
**Key Points / Main Content**
* **Privatization Status of IDBI Bank:**
* The Cabinet Committee on Economic Affairs (CCEA) approved strategic disinvestment of IDBI Bank along with transfer of management control on 05.05.2021.
* 60.72% of IDBI Bank's equity is offered for strategic disinvestment with transfer of management control. Government of India (GOI) is offering 30.48% and LIC is offering 30.24% equity for disinvestment.
* The Preliminary Information Memorandum (PIM) for inviting Expression of Interest (Eol) was published on 7th October, 2022.
* Expressions of Interest (EOIs) were received and sent to Ministry of Home Affairs (MHA) and the Reserve Bank of India (RBI) for security clearance and assessment.
* The transaction is currently in the due diligence stage by Shortlisted Bidders (SBs).
* The identity of bidders cannot be disclosed before completion of the transaction.
* **Operating Profit and Assets of IDBI Bank:**
* Details of the operating profit over the last 10 years (Mar-25 to Mar-16) are provided in a table.
* In March 2025, IDBI Bank had outstanding capital and liabilities of approximately Rs.4.11 lakh crores, backed by the same amount in total assets (tangible and intangible).
* **Other Privatizations:**
* There is no proposal to privatize additional Public Sector Banks (PSBs) at present.
* There is no proposal to merge IDBI Bank with another Public Sector Bank.
* **Impact of Strategic Disinvestment/Privatization:**
* An analysis of the impact of strategic disinvestment/privatization on performance of select Central Public Sector Enterprises (CPSEs) (11 companies) was carried out in Chapter 9 of the Economic Survey (2019-20).
* The privatized CPSEs, on average, performed better post-privatization than their peers in terms of several financial metrics.
**Impact Analysis**
**Government of India (GOI) and Life Insurance Corporation of India (LIC)**
* **Impact:** Reduction in shareholding in IDBI Bank through disinvestment to residual equity of 15% (GOI) and 19% (LIC).
* **Action Required:** Facilitate the due diligence process by Shortlisted Bidders and proceed with the strategic disinvestment.
**Shortlisted Bidders (SBs)**
* **Impact:** Opportunity to acquire a significant stake and management control of IDBI Bank.
* **Action Required:** Complete due diligence within the specified timeline.
**Employees and Depositors of IDBI Bank**
* **Impact:** Potentially affected by the changes and improvements resulting from privatization.
* **Action Required:** No immediate action is required. The impact on performance of select Central Public Sector Enterprises (CPSEs) (11 companies) was carried out in Chapter 9 of the Economic Survey (2019-20).
Key Entities Referenced
IDBI Bank: A bank undergoing strategic disinvestment and transfer of management control by the Government of India.
Cabinet Committee on Economic Affairs (CCEA): The committee that gave 'in principle' approval for the strategic disinvestment of IDBI Bank.
Ministry of Finance: The ministry responsible for the privatization of IDBI Bank and related policies.
Department of Investment and Public Asset Management (DIPAM): A department under the Ministry of Finance, involved in the investment and public asset management, including the privatization of IDBI Bank.
Reserve Bank of India (RBI): The central bank involved in the assessment and approval process for the privatization of IDBI Bank.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF INVESTMENT AND PUBLIC ASSET MANAGEMENT
(DIPAM)
LOK SABHA
UNSTARRED QUESTION NO. 109
TO BE ANSWERED ON MONDAY, DECEMBER 01, 2025
AGRAHAYANA 10, 1947 (SAKA)
PRIVATISATION OF IDBI BANK
109. Shri Rahul Gandhi:
Will the Minister of FINANCE be pleased to state:
(a) whether the Government plans to complete the privatisation of IDBI Bank by 2026, if so,
the current status of the privatisation process of the same;
(b) the details of bidders that have submitted expressions of interest or qualified for financial
bids under the disinvestment process;
(c) whether the Government proposes to privatise additional PSBs and if so, the details
thereof along with the rationale for privatising profit-making Public Sector Banks;
(d) the year-wise details of operating profits of IDBI Bank over the last ten years and the
details of IDBI Bank's tangible and intangible assets;
(e) whether the Government has received or is considering any proposal to merge IDBI Bank
with another Public Sector Bank instead of proceeding with its disinvestment, if so, the
details 43 thereof;
(f) whether the Government has undertaken any assessment of the impact of privatisation
on existing employees, depositors and public accountability; and
(g) if so, the details thereof?ANSWER
THE MINISTER OF STATE FOR FINANCE
(SHRI PANKAJ CHAUDHARY)
(a)&(b) The Cabinet Committee on Economic Affairs (CCEA) in its meeting on 05.05.2021
has given 'in principle' approval for the strategic disinvestment along with transfer of
management control in IDBI Bank Ltd. of such extent of shareholding in Government of India
and LIC as may be decided in consultation with LIC and within the framework agreed to by
the Reserve Bank of India (RBI).
Pursuant to the CCEA’s (Cabinet Committee on Economic Affairs) approval in May 2021 for
strategic disinvestment along with transfer of management control in IDBI Bank Ltd, 60.72%
of IDBI Bank’s equity is being offered for strategic disinvestment with transfer of
management control, wherein GoI is offering 30.48% (post sale GOI’s residual equity to be
15%) and Life Insurance Corporation of India (LIC) is offering 30.24% equity for
disinvestment (post sale LIC’s residual equity to be 19%).
The Preliminary Information Memorandum (PIM) for inviting Expression of Interest (EoI)
from potential bidders was published on 7th October, 2022. In response to the PIM, multiple
Expressions of Interest (EOIs) were received. These EOIs were sent to Ministry of Home
Affairs (MHA) for Security clearance and the Reserve Bank of India (RBI) for ‘fit and proper’
assessment. After security clearance from MHA and fit and proper evaluation by RBI, the
transaction is currently in the stage of due diligence by Shortlisted Bidders (SBs).
As per the extant process, the identity of bidders cannot be disclosed before completion of
the transaction.
(c) No Sir. There is no such proposal at present.
(d) The details of operating profit over the last 10 years are as follows:
(Amount in Rs. Crore)
Years Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar- Mar-
25 24 23 22 21 20 19 18 17 16
Operating 11079 9592 8736 7495 7091 5112 4052 7905 4578 5370
Profit
Source: IDBI Bank
In March 2025, IDBI Bank had outstanding capital and liabilities of approx.Rs.4.11 lakh
crores which were backed by total assets (tangible and intangible) of the same amount.
(e) No Sir. The disinvestment of IDBI Bank will be carried out as per the CCEA approval.
(f) to (g) The analysis of the impact of strategic disinvestment/ privatization on performance
of select Central Public Sector Enterprises (CPSEs) (11 companies) was carried out in
Chapter 9 of the Economic Survey (2019-20). This shows that the privatized CPSEs, on an
average, performed better post-privatisation then their peers in terms of net worth, net profit,
return on equity, return on assets, gross revenue, net profit margin, sales growth and gross
profit per employee.
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